Reddit shares jumped 11% in extended trading on Thursday following the announcement of a partnership with OpenAI. This collaboration allows OpenAI to train its AI models, including ChatGPT, on Reddit content. In return, Reddit will offer certain AI features to users and moderators, powered by OpenAI, which will also become a Reddit advertising partner. This partnership follows a similar deal with Google in February, where Google gained access to Reddit’s API to train its AI models, such as Gemini.
As part of the deal, OpenAI will gain access to Reddit’s Data API, which offers real-time, structured, and unique content from Reddit, according to a release.
OpenAI CEO Sam Altman, a former Reddit board member and major shareholder, holds a stake valued at about $750 million after the stock surge. OpenAI COO Brad Lightcap led the deal, which was approved by the company’s board.
Earlier this week, OpenAI launched a new AI model and a desktop version of ChatGPT, featuring an updated user interface. This update, which includes GPT-4 for all users, was announced by CTO Mira Murati, highlighting the model’s improved speed and capabilities in text, video, and audio. OpenAI also plans to introduce video chat functionality for ChatGPT.
The deal with OpenAI comes as Reddit experiences a renewed interest following a rally in meme stocks like GameStop. Since its IPO in March, Reddit is trading near its high of $65.11.
“Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up to date human conversations about anything and everything,” CEO Steve Huffman said in Thursday’s release. “Including it in ChatGPT upholds our belief in a connected internet, helps people find more or what they’re looking for, and helps new audiences find community on Reddit.”
